MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - Nasdaq - US6067102003 - Common Stock - Currency: USD
Taking everything into account, MITK scores 5 out of 10 in our fundamental rating. MITK was compared to 282 industry peers in the Software industry. MITK has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on MITK.
1. Profitability
1.1 Basic Checks
In the past year MITK was profitable.
MITK had a positive operating cash flow in the past year.
MITK had positive earnings in each of the past 5 years.
In the past 5 years MITK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MITK (3.13%) is better than 71.63% of its industry peers.
With a decent Return On Equity value of 6.05%, MITK is doing good in the industry, outperforming 73.40% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.11%, MITK is in the better half of the industry, outperforming 73.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MITK is significantly below the industry average of 12.68%.
The last Return On Invested Capital (4.11%) for MITK is above the 3 year average (3.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROIC | 4.11% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
1.3 Margins
The Profit Margin of MITK (7.51%) is better than 73.76% of its industry peers.
In the last couple of years the Profit Margin of MITK has declined.
MITK has a better Operating Margin (11.26%) than 78.01% of its industry peers.
MITK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 85.84%, MITK belongs to the top of the industry, outperforming 93.97% of the companies in the same industry.
MITK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.26% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% |
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MITK is destroying value.
MITK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MITK has more shares outstanding
Compared to 1 year ago, MITK has a worse debt to assets ratio.
2.2 Solvency
MITK has an Altman-Z score of 1.73. This is a bad value and indicates that MITK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MITK (1.73) is comparable to the rest of the industry.
MITK has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as MITK would need 3.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.19, MITK is in the better half of the industry, outperforming 62.77% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that MITK is somewhat dependend on debt financing.
MITK has a worse Debt to Equity ratio (0.68) than 68.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.42
WACC9.69%
2.3 Liquidity
MITK has a Current Ratio of 1.04. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
MITK has a worse Current ratio (1.04) than 74.11% of its industry peers.
MITK has a Quick Ratio of 1.04. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
MITK's Quick ratio of 1.04 is on the low side compared to the rest of the industry. MITK is outperformed by 73.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.32% over the past year.
Measured over the past years, MITK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.42% on average per year.
Looking at the last year, MITK shows a small growth in Revenue. The Revenue has grown by 7.76% in the last year.
The Revenue has been growing by 15.26% on average over the past years. This is quite good.
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
3.2 Future
The Earnings Per Share is expected to grow by 13.33% on average over the next years. This is quite good.
Based on estimates for the next years, MITK will show a quite strong growth in Revenue. The Revenue will grow by 8.56% on average per year.
EPS Next Y-6.5%
EPS Next 2Y6.62%
EPS Next 3Y13.33%
EPS Next 5YN/A
Revenue Next Year3.25%
Revenue Next 2Y6.13%
Revenue Next 3Y8.56%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MITK is valuated reasonably with a Price/Earnings ratio of 8.51.
Based on the Price/Earnings ratio, MITK is valued cheaply inside the industry as 92.55% of the companies are valued more expensively.
MITK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.17.
MITK is valuated reasonably with a Price/Forward Earnings ratio of 8.50.
Based on the Price/Forward Earnings ratio, MITK is valued cheaper than 92.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. MITK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 8.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MITK is valued cheaper than 95.04% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 95.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
The decent profitability rating of MITK may justify a higher PE ratio.
A more expensive valuation may be justified as MITK's earnings are expected to grow with 13.33% in the coming years.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y6.62%
EPS Next 3Y13.33%
5. Dividend
5.1 Amount
MITK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:MITK (5/29/2025, 9:36:06 AM)
9.28
+0.07 (+0.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners79.08%
Inst Owner Change1.93%
Ins Owners1.71%
Ins Owner Change9.71%
Market Cap422.80M
Analysts81.67
Price Target13.36 (43.97%)
Short Float %6.27%
Short Ratio6.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.02%
Min EPS beat(2)1.42%
Max EPS beat(2)36.62%
EPS beat(4)3
Avg EPS beat(4)30.19%
Min EPS beat(4)-5.73%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)12.66%
EPS beat(12)8
Avg EPS beat(12)16.56%
EPS beat(16)12
Avg EPS beat(16)18.92%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)0.88%
Max Revenue beat(2)7.26%
Revenue beat(4)3
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-8.11%
Max Revenue beat(4)7.26%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)7
Avg Revenue beat(12)3.39%
Revenue beat(16)9
Avg Revenue beat(16)3.47%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-23.78%
EPS NQ rev (3m)-23.78%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-4.82%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 8.5 | ||
| P/S | 2.38 | ||
| P/FCF | 8.97 | ||
| P/OCF | 8.74 | ||
| P/B | 1.92 | ||
| P/tB | 8.99 | ||
| EV/EBITDA | 7 |
EPS(TTM)1.09
EY11.75%
EPS(NY)1.09
Fwd EY11.76%
FCF(TTM)1.03
FCFY11.14%
OCF(TTM)1.06
OCFY11.45%
SpS3.89
BVpS4.83
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 6.05% | ||
| ROCE | 8.69% | ||
| ROIC | 4.11% | ||
| ROICexc | 6.42% | ||
| ROICexgc | 22.72% | ||
| OM | 11.26% | ||
| PM (TTM) | 7.51% | ||
| GM | 85.84% | ||
| FCFM | 26.56% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.14%
ROIC(5y)3.84%
ROICexc(3y)4.75%
ROICexc(5y)6.3%
ROICexgc(3y)31.47%
ROICexgc(5y)27.48%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexcg growth 3Y-20.18%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.05%
ROICexc growth 5YN/A
OM growth 3Y-43.54%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 7.82% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 15.68 | ||
| Cash Conversion | 133.14% | ||
| Profit Quality | 353.47% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.73 |
F-Score8
WACC9.69%
ROIC/WACC0.42
Cap/Depr(3y)7.2%
Cap/Depr(5y)9.44%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.83%
Profit Quality(3y)714.7%
Profit Quality(5y)578.49%
High Growth Momentum
Growth
EPS 1Y (TTM)49.32%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%50%
EPS Next Y-6.5%
EPS Next 2Y6.62%
EPS Next 3Y13.33%
EPS Next 5YN/A
Revenue 1Y (TTM)7.76%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%10.56%
Revenue Next Year3.25%
Revenue Next 2Y6.13%
Revenue Next 3Y8.56%
Revenue Next 5YN/A
EBIT growth 1Y700.3%
EBIT growth 3Y-36.3%
EBIT growth 5YN/A
EBIT Next Year19.39%
EBIT Next 3Y21.32%
EBIT Next 5YN/A
FCF growth 1Y72.26%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y71.49%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%